Policies in works for captive berth extension, land use at major ports

NEW DELHI: The Centre is preparing a policy framework for utilising vacant land at major ports and extending captive berths that could potentially allow building townships, marinas, and recreational projects in such areas, officials said. The proposal is likely to be sent for Cabinet approval shortly.

The policy would seek to optimise use of waterfront and associated land for industrial purposes. It is expected to bring relief to companies who have developed projects reliant on captive berths since the existing policy does not provide for an extension.

India's major ports are administered by the Centre while the rest are controlled by states.


"The policy framework is being finalised...These are aimed at promoting transparency besides ease of doing business for private entities on port land," a senior government official told ET, adding that the measures would also boost financial inflows for major ports.

The proposed land utilisation policy will enable development of port-related industries on property lying vacant with major ports. "Townships, marina, tourism, and recreational projects can be set up after the Cabinet approval," the official said.

The new policy will also bring consistency in valuing land available with ports, while also determining lease rentals.

Concessional rates could be offered for undertaking activities that supplement port infrastructure.

The proposed policy would permit lease extension of captive berths and jetties at major ports.

"The policy will safeguard the interests of existing concessionaires. They will be given first-right-of-refusal for extension," a second official said, adding the policy will define the framework for auctioning licenses to operate these facilities.

The risk of rivals taking over captive berths tends to impact investments in projects that depend on these jetties. "While the cost of jetty is low compared to a large infrastructure like fertiliser project, losing access to port facilities at concessional rates can render them unviable," the official added.

The policy will also address concerns of companies whose leases have already lapsed and were getting temporary extensions on a case-to-case basis.

Besides unleashing port land reforms, the Centre is also preparing to launch the Cruise India Mission. This is aimed at accelerating growth of India's maritime sector for deep sea cruises, coastal cruises, river cruises and yacht cruises, coastal and river assets such as island lighthouses.